After remaining volatile throughout the day, the benchmark Sensex ended almost flat with a marginal fall of six points on the Bombay Stock Exchange on 11 April on heavy selling by funds at the fag-end.
The sensex closed 6.30 points at 13,183.24 after touching the day’s high of 13,294.90 and a low of 13,161.21 points. However, the National Stock Exchange index Nifty was little higher by 14.50 points at 3862.65. It touched a high of 3876.35 and a low of 3844.75 points.
Metal stocks led by Tata Steel, the world’s fifth largest steelmaker, rose on a report the company might raise funds through a rights offer. The metal index gained the most by 330.86 points, or 3.68 per cent at 9330.87.
Tata Steel shares rose by Rs.16.30 at Rs.511.85, extending a five-day rise on the BSE, ahead of the company’s board meeting slated for 17 April to discuss plans to raise funds to purchase UK’s Corus Group.
Steel “prices are buoyant globally and Tata Steel will probably raise rates in the next few days,” said Rahul Jain, an analyst at Man Financial-Sify Securities in Mumbai. He has a “buy” rating on the shares.
Jet Airways (India) Ltd., the nation’s biggest domestic carrier, fell on analyst assessments that the company’s proposed purchase of Sahara Airlines Ltd. will increase debt.
Tata Steel gained Rs17.05 or 3.4%, to 512.6, extending a five-day, 17% advance.Tata Steel’s Deputy Managing Director T.K. Mukherjee said the company is negotiating prices for long-term supply contracts. The steelmaker sells 70% of its production through long-term contracts, which helps shield its earnings from fluctuations in spot-market prices.
Baoshan Steel Ltd., China’s biggest steelmaker, increased prices of its major products by up to 6.5% for the three months ending June. Mittal Steel South Africa Ltd., Africa’s biggest steelmaker, said 30 March it will raise prices by as much as 10 % from May. Uttam Galva Steels Ltd., India’s second-largest maker of galvanized steel, said yesterday it will boost prices by as much as Rs5,000 ($116) a tonne.
Jet Airways fell Rs29.65, or 4.6%, to 615.2. Jet yesterday made a bid to buy Sahara for Rs14.5 billion. Jet Airways withdrew an earlier bid of Rs22 billion for Sahara 10 months ago.
The acquisition “will further affect Jet’s strained balance sheet,” Jamshed Dadabhoy, Citigroup Inc.’s Mumbai-based analyst, wrote in a report to clients late yesterday. “Timely and effective integration of Air Sahara remains a key risk factor.”
“We are concerned about the extent to which this purchase might weaken Jet’s balance sheet ahead of a large international fleet expansion,” Peter Negline, a Hong Kong-based analyst at JPMorgan Chase & Co. wrote in a note late yesterday.
Overseas investors bought a net Rs5.7 billion worth of Indian shares on 9 April, according to the latest information on the Securities & Exchange Board of India’s Web site.